October 2012

Well in our market the majority of sales are either bank owned or short sales, and people often wonder which is a better deal. Well first off we have to differentiate between the two. Bank owned or what is often called REO( Real estate owned) is a home that is taken over by the bank via foreclosure by the previous owner.

A short sale is where the current owner is trying to sell the home for less than they owe, because they can no longer make payments on the house, or have some other form of financial hardship. Now that I have explained the major difference in these two, I will go into the pro's and cons of buying these types of properties. Ok, so you want to buy a REO, this is what you can expect. One the property is usually sold -as-is and the bank